Date of Award

2010

Thesis Type

Masters

Document Type

Dissertation

Divisions

Academy of Islamic Studies

Department

Department of Shariah, Economics and Governance (formally known as Department of Syariah & Economics)

Institution

Universiti Malaya

Abstract

Many advances in science and technology have taken place in Indonesia, and, consequently, the development of Islamic banking in Indonesia has improved. As the majority of people in the country are Moslem it is virtually possible to identify a better future for the Islamic banking market than in Indonesia. Based on the Islamic official regulation (fatwa) Council of Indonesia Moslem Scholar (Majelis Ulama Indonesia) No. 54/DSN-MUI/X/2006 and the Circular Letter of Indonesian Bank (Surat Edaran Bank Indonesia) No. 9/IB3/DPbS/2007 Danamon Islamic Bank took advantage of the economic market to establish an Islamic credit card product called Dirham Card. This study analyses the implementation of the Islamic credit card in Danamon Islamic Bank. This study will begin by explaining the definition and types of plastic card. Then it addresses the definition, concept and function of credit cards for both conventional and Islamic credit cards. Moreover, the researcher elaborates in detail on implementing the Dirham Card based on Islamic principles and how they were applied with reference to the Dirham Card. The process of this research applied library research and field research. Library research was conducted to obtain information from books, pamphlets, papers, journals, newspapers and the data associated with the reference and research topic, while the field research used interviews and visits to the research place. In the analysing process, the researcher used two methods – inductive and deductive. This study discovered that the Dirham Card is being implemented in accordance with Islamic principles. By conducting a three-scheme agreement as the fundamental validity – IjÉrah scheme (leasing system for payment and services), KafÉlah scheme (assurance of banking transaction towards merchant) and QarÌ al-×asan scheme (cash debt for cash withdrawal facility) – the Dirham Card is able to compete with other Islamic banking institutions. Even though the Dirham Card has experienced several difficulties in its operation, this does not detract from the performance of the Dirham Card. In 2008, there were more than twenty thousand holders of Islamic credit cards. This means that the number of holders of the Dirham Card increased by 212 per cent from the previous year. Looking at the increasing number of Islamic credit card holders in Indonesia, it is predicted that the prospect and future expansion of Islamic credit cards will continuously grow and increase in Indonesia’s Islamic banking.

Initial

khm

Additional Information

Dissertation (M.A.) – Academy of Islamic Studies, Universiti Malaya, 2010.

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